Generative AI adoption among game developers reached 40% globally in a survey released on Thursday by GamesIndustry.biz, marking a 4% increase over the previous year as the technology transitions from theoretical tool to everyday workplace actuality.
Workers are no longer just discovering the tech; they are actively deciding whether and how to use it.
Beth Elderkin, survey project lead and content marketing manager, noted this shift in conversation. “People just know the technology now, and it’s an actuality instead of a theoretical issue, so they know how they want to use it or whether they want to use it at all,” Elderkin told GamesIndustry.biz.
Among developers utilizing generative tools, 57% employ them for text generation, research, early prototyping, coding, and presentations. Adoption rates skew highest among business operations and services, mobile-only studios, and free-to-play developers, according to the data released from the Game Developers Conference.
Generative AI Usage Divides AAA and Indie Studios
In AAA studios, 27% of workers report feeling encouraged or pressured to use generative AI in their workflows. Among indie developers, that figure drops sharply to just 9%.
Despite broader familiarity, negative sentiment persists. 55% of respondents indicated that AI is having a negative impact on games. That figure represents a 1% increase year-on-year, though Elderkin pointed out that the steep percentage swings seen in earlier years have largely calmed down.
Layoffs and the Quest for Funding
The broader studio landscape remains strained by job losses and tighter financing. One-third of survey respondents reported being laid off in the past 24 months, with 38% affected among U.S.-based participants, as reported by Mezha.net. Around half of all participants said their company had conducted layoffs, hitting AAA staffers hardest at 68%, compared to 35% at established studios and 14% at younger indies.
Recovery proves difficult for those displaced. 54% of laid-off workers remain unemployed, and 25% have submitted at least 100 job applications. Total unemployment among respondents stands at 21%, up from 13% in the prior report.
“I think there are still a lot of challenges that are happening, and I do believe the ongoing layoffs have not contributed to a sense of stability,” Beth Elderkin, survey project lead and content marketing manager, said.
Securing external backing has become considerably harder. “The overall consensus was that publishers are expecting more right out of the gate,” survey project lead and content marketing manager Beth Elderkin told GamesIndustry.biz. Private equity investments have simultaneously retreated from pandemic-era highs, forcing half of developers to rely on self-funding, contract work, and co-development partnerships to survive.
PC Leads Development While XR Interest Drops
PC retains its stronghold as the primary development platform at 81% (or 83% according to Mezha.net). The PlayStation 5 and Xbox Series X/S sit at 45% and 37% respectively, while next-generation hardware commands single-digit numbers: 10% are building for the next PlayStation console, and 8% target Xbox’s upcoming Project Helix.
Meanwhile, interest in virtual, augmented, and mixed reality has plummeted. Development for XR projects dropped from 8% down to 3%. Elderkin attributed the decline to a lack of major new announcements, shifting focus from hardware giants like Meta, and ongoing closures among specialized VR studios.
Overwork Harms Mental Health as Union Support Grows
Overwork remains pervasive. 86% of developers reported logging more than 40 hours in a single week, with 65% stating that their mental health has suffered as a result. 63% believe this overwork was entirely avoidable through better leadership and project planning.
Engine preferences saw minor shifts, with Unreal Engine at 35% and Unity at 28%—both declining slightly—while 23% relied on proprietary engines. In response to industry volatility, 15% of U.S. developers are now unionized, with 80% supporting unionization.
Despite these headwinds, Elderkin highlighted a prevailing sense of grit. “We’re seeing more respondents saying, ‘I’m going to take it in my own hands. I’m making my own game. I’m starting my own studio,’” Elderkin told GamesIndustry.biz.
